PPC - Pretoria Portland Cement Company Limited - Acquistion of Pronto Holdings
PPC
PPC
PPC - Pretoria Portland Cement Company Limited - Acquistion of Pronto Holdings
Pretoria Portland Cement Company Limited
Incorporated in the Republic of South Africa
(Registration number 1892/000667/06)
JSE Share code: PPC
ZSE share code: PPC
ISIN: ZAE000096475
("PPC" or the "Company")
ACQUISTION OF PRONTO HOLDINGS
PPC is pleased to advise that the acquisition of Pronto Holdings (Pty) Limited
(Pronto) that was announced during November 2011, has been unconditionally
approved by the Competition Commission.
Through this acquisition PPC will become a supplier to the Gauteng markets for
ready mix concrete and fly ash. Fly ash is used as an extender in the
manufacture of cement and concrete.
The purchase consideration will be calculated as 5.6 times Pronto`s EBITDA less
net debt. A first tranche of 25% will be paid at initiation; a second tranche of
25% after one year and the remaining 50% at the conclusion of the second year.
Based on Pronto`s unaudited results to year end, February 2012, the initial
tranche will be approximately R70 million. Although subsequent payments are
planned to increase, the total purchase consideration is not expected to exceed
R400 million.
Paul Stuiver, CEO of PPC commented "This will be a value-adding transaction for
shareholders and customers of both Pronto and PPC".
Sandton
19 March 2012
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 19/03/2012 15:50:08 Produced by the JSE SENS Department.
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